Once the norm is in place, domestic operators can import overseas-registered aircraft and fly them on foreign registration with Indian crew.
Proposing changes to existing regulations, the Civil Aviation Ministry today said they are aimed at boosting the growth of the civil aviation sector and in particular, the regional air connectivity scheme.
"This will also make the aircraft leasing environment user-friendly," it said in a release.
In this regard, a new regulation on criteria for leasing of foreign registered aircraft by domestic operators for operation by Indian crew has been put up for public consultations.
"The proposed regulations lay emphasis on airworthiness, training, operation and safety oversight aspects. Before such arrangement would be permitted, both the State of Operator and the State of Registry would have to sign a Memorandum of Understanding on oversight responsibility," the Ministry said.
Currently, Indian operators planning to fly foreign aircraft in the country have to first get them registered with the Directorate General of Civil Aviation (DGCA) and have the national mark 'VT' or 'Viceroy Territory' on the plane.
Looking to boost regional air connectivity and make flying more affordable, the Ministry has come out with the ambitious UDAN (Ude Desh Ka Aam Naagrik). Among others, fares would be capped at Rs 2,500 for one-hour flights operated under this scheme.
Meanwhile, in order to make it easier for overseas aircraft lessors, the Ministry has also proposed setting a deadline of five working days for giving permission to fly back de-registered aircraft to their respective jurisdictions.
Lessors have faced problems in taking back aircraft leased to Indian carriers in the past, especially with regard to shuttered Kingfisher Airlines.
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